CAPITAL AND REVENUE : ILLUSTRATION 10

    CAPITAL AND REVENUE: ILLUSTRATION 10

    A legal practitioner received his fee for drafting a partnership deed. The amount received by him is a revenue receipt because it is his income. We should not consider it a capital expenditure for the business making the payment.

    5. LUMPSUM RECEIPT

    The fact that amount is being received in lumpsum or in instalments should never be considered while distinguishing between capital and revenue receipts. Dfa Ho It will simply confuse your judgement because a lumpsum-receipt can be a revenue-receipt and in certain cases, an amount received monthly or annually can be a capital receipt.

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